State budget impasse puts programs at risk

RICHMOND—Virginia's state budget impasse is casting a shadow over a new state program that this year resulted in a 19.5% reduction in the cost individuals pay for health insurance.

The result could be a sharp rise in premium rates if the House of Delegates and state Senate cannot figure out how to resolve their $1 billion worth of differences over the budget.

The program uses state funds and a larger sum of matching federal grants to run a reinsurance program — essentially, a backstop plan that covers the cost of health insurers' biggest claims.

That reinsurance allows the insurers to cut their premium rates to reflect the benefit of the backstop. In 2023, the reinsurance program reduced premiums by 19.5%, the State Corporation Commission Bureau of Insurance said in response to questions from the Richmond Times-Dispatch.